October 2012 Archives
Time to repost the most recent Deseret News article from yesterday.
As many observers expected the U.S. Federal Reserve began a new round of quantitative easing this fall in an attempt to stimulate the economy by increasing the supply of available money. As I discussed at the beginning of August, there is no fundamental difference between quantitative easing and the Fed's normal open market operations. In the latter case the Fed buys U.S. Treasury securities on the bond market and in the former case it buys other non-traditional financial assets. In both cases, however, it pays for these purchases by creating money.
A few years back I volunteered at an archeological site in Range Creek, Utah. I learned that archeology is arguably the most interdisciplinary subject in the world. And I learned that I don't have the eyesight or the tolerance for dust needed to succeed in that field. I also learned an interesting lesson about the interesting ways that economic thinking can inform our understanding of societies, even ones that leave no written history.